People in their mid-30s and 40s are most anxious about spiralling inflation while women are more likely to be concerned by the prospect of rising prices, according to a new study.
With inflation running at a rate of 6.7 per cent and likely to top 8 per cent in the months ahead, there is a huge degree of anxiety about what impact the dramatically changed landscape will have.
The research – carried out by bonkers.iein conjunction with Red C – focussed on how worried people are about he rising price of utilities, motor fuel, food, broadband and streaming services.
All told, 89 per cent of people said they were “highly concerned or worried” about rising gas and electricity prices. This rose to 95 per cent among the 35-44 age group.
Meanwhile 81 per cent expressed the same level of concern when it comes to rising petrol and diesel prices, a figure which jumped to 84 per cent among women and 85 per cent among the 35-44 age group.
Food prices are also a big concern with 72 per cent of men and 77 per cent of women telling researchers they were highly concerned about inflation up and down their supermarket aisles. The figure climbed to 81 per cent among those in their 30s and 40s.
Rising communication costs for things like broadband, TV and streaming services are also a big worry to consumers although not to the same extent – with 60 per cent of people saying they were highly concerned.
Netflix recently announced a price increase of up to 17 per cent for its Irish customers, while Vodafone has just increased the price of its plans for most of its new and existing customers by 5.5 per cent.
“After almost a decade of negligible price growth, inflation has come back with a bang. Prices have risen by almost the same amount over the past year than they did in the previous decade,” noted the price comparison and switching website’s spokesman Daragh Cassidy.
“Understandably, rising energy prices are what concern people most. Since the autumn of 2020, the average electricity bill has shot up by about €800 a year and the average gas bill has gone up by about €600.”
He said that food inflation was “the next big thing” to worry about.
“At 3 per cent it’s at its highest level in years according to the CSO and could reach close to 5 per cent or more over the coming months,” Mr Cassidy said. “As recently as January 2021, food prices were falling by 2.1 per cent, so it’s a big turnaround in the space of just over a year.”
What about months ahead?
Across all areas, women are slightly more concerned than men about rising prices and across age groups, the 35-44s show the most concern.
“This is unsurprising as this is the group most likely to have young children, be earlier in their careers and therefore have lower wages, and to have a higher mortgage and more monthly outgoings.”
Mr Cassidy was downbeat about the prospects for the months ahead.
“Looking forward, there is no immediate end in sight to rising prices. Energy prices, which are highly volatile, will largely determine whether inflation will return to more normal levels over the coming months, as will the trajectory of the war in Ukraine.
"To deal with rising prices, the ECB is likely to have to start raising interest rates towards the end of the year, which in turn will lead to higher mortgage payments for those on variable rates and trackers, which could put even more pressure on household finances."
